President Trump hints at some reprieve on auto tariffs

Even a brief delay would allow automakers like GM and Stellantis more time to pivot and offset some of the higher costs before passing them on to consumers. (3 min. read)

Author

Marcus Amick
April 15, 2025

President Trump has suggested that he might give some automakers some kind of leeway on tariffs—causing the stocks of several auto companies to pop.  

The details: During a meeting Monday with Salvadoran President Nayib Bukele in the Oval Office, Trump told reporters he might “help some of the car companies” with the 25% auto tariffs because they “need a little bit of time” to shift parts production to the U.S. We’re not sure if that means he’s planning to move on that idea, but it did prompt a swing in the market. 

  • Immediately afterward, Ford, General Motors and Stellantis went from trading level or negative to being up between 1% and 4%. 

  • Shares of Rivian Automotive also were up 3%, while shares of Tesla were off by roughly 2%. 

  • Japanese automakers Toyota and Honda were up less than 2% during midday trading.

Why it matters: Figuring out President Trump’s next move regarding tariffs is akin to riding on a new roller coaster—you never know where the next turn will take you. However, even a brief delay in the measures would enable automakers like GM and Stellantis to make production changes to offset some of the higher costs before passing them on to consumers. 

Between the lines: Providing some reprieve on the auto tariffs would align with some other moves made by President Trump regarding the levies, intended to help soften the blow of the measures on some essential products used by U.S. consumers.     

  • Late Friday, the Trump Administration exempted smartphones and other electronics products in his recently imposed tariffs—though Trump has since clarified that the exemption is temporary.

  • The President also announced over the weekend that there would be flexibility for some companies for tariffs he plans to enact on semiconductor chips imported to the U.S. (which are used in consumer electronics and automobiles).

Bottom line: President Trump’s willingness to be “flexible,” (as he describes it) on the tariffs, suggests that the parameters of the auto levies are not set in stone. That leaves the door open for some negotiations—potentially easing the impact in both the short term and long term. 

Outsmart the Car Market in 5 Minutes a Week

No-BS insights, built for car dealers. Free, fast, and trusted by 95,000+ auto pros.

Subscribe now — it’s free. 

Tailored Customer Experiences at Every Touchpoint? There’s AI for That. 

Impel’s AI Operating System maximizes engagement and conversion across marketing, chat, sales, and service. Now dealers can deliver one-to-one concierge experiences at scale across every step of the consumer journey, driving new levels of revenue, customer retention, and profitability.

And with our new AI Knowledge Bank, you can customize your AI for maximum flexibility. From incentives and service policies to tariff responses, train Impel once, and every conversation immediately reflects your latest updates. The result? 

  • As much as a 50% increase in appointment set rates 

  • Up to a 26% reduction in human intervention 

  • 95 incremental Repair Orders on average per month

  • An increased repurchase rate of nearly 25% 

See the difference the Impel AI Operating System makes today. Visit impel.ai/cdg.

Reply

or to participate.